Year End Tax Review 2010/2011


Lead articles

Looking forward

This year, next year

Rate of change

Pension merry-go-round


Too much NIC

NIC and pensions

Company cars

Tax-free benefits

Childcare vouchers

Business - General

Time to incorporate?

Associated or not?

His and hers

Family bonus

Profit and loss

Show me the money

Can't pay, won't pay?

Turning back the clock

Business - VAT

Standard VAT or flat VAT?

VAT's up again

All Europeans now

A good start for VAT

Happy returns?


Top-up savings

Rainy day money

Capital Gains

Gains favoured

Splitting gains

A place in the country

Holiday lets reprieved


Family fortunes

Where there's a Will

Credits and debits

Benefit going

Piggy banks

Still trustworthy?


Penalty shoot-out

Going online

Paperwork, paperwork

Pay tax later

Opportunity knocks again


Give and save

Non-Domiciled People

Home and away


Interesting times

Interesting times

Tax relief on home loans is a distant memory. But if you run a company or a business, or if you buy property to rent out, it's possible to enjoy tax relief on interest paid. Although the terms of such "business-related" loans may be different from a domestic mortgage, the tax relief for a top rate taxpayer can reduce the cost to half of what it would otherwise be. 50% of 8% is less than 100% of 6%! If the rates and terms are the same for two loans, tax relief is a pure advantage.

The same goes for paying off borrowings. If you want to reduce the cost of interest payments, look at the net cost rather than the gross - you might want to reduce "private" borrowings even if the rate is lower before you pay off loans on which you get tax relief.

Action Point!
Review borrowings to see if relief can be obtained